easyJet vows low prices despite profit loss
Tuesday, May 10, 2016
The British low-cost carrier promises low fares, despite the record breaking profit loss of £24m during the six months until the end of March 2016. This is a drastic plummet in comparison to the £7m in profits recorded for the same period last year.
Turbulent Times
According to the airline, business suffered a huge blow in the wake of the terrorist attacks that took place in Egypt, Paris and Brussels. Last November's terrorist attack in Paris led the airline to a decline in revenue of 2.7 % per seat. Another 1.3% revenue per seat was knocked off following the suspension of flights to the popular tourist destination Sharm el-Sheikh. Further profits are also said to have shrunk with the declining value of the pound. While low oil prices have brought down ticket fares, this was outweighed by the impact of the terror attacks.
In spite of the bleak outlook the company remains optimistic. In a statement Chief Executive Carolyn McCall pointed out that the airline delivered a sturdy performance "despite recent disruptive events". easyJet has vowed to keep ticket prices low in order to stimulate travel, as it prepares for this year's summer season.
Written by: Flight-Delayed
